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Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards...

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Accounting

Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's
labor standards for one Jogging Mate are as follows:
During August, 8,600 hours of direct labor time were needed to make 20,000 units of the
Jogging Mate. The direct labor cost totaled $52,460 for the month.
Required:
What is the standard labor-hours allowed (SH) to makes 20,000 Jogging Mates?
What is the standard labor cost allowed (SH SR) to make 20,000 Jogging Mates?
What is the labor spending variance?
What are the labor rate variance and the labor efficiency variance?
The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During
August, the company incurred $44,720 in variable manufacturing overhead cost. Compute
the variable overhead rate and efficiency variances for the month.
Note: For requirements 3 through 5, indicate the effect of each variance by selecting "F"
for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all
amounts as positive values. Do not round intermediate calculations.
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